Mr. Galen McNamara reports

ANGOLD RESOURCES COMPLETES ACQUISITION OF INTEREST IN SASKATCHEWAN URANIUM PROJECTS AND CHANGES NAME TO AERO ENERGY LIMITED

Aero Energy Ltd., formerly Angold Resources Ltd., has completed the acquisition of 1443904 B.C. Ltd. (NumberCo) pursuant to the terms of a share purchase agreement dated Dec. 21, 2023. NumberCo holds options to acquire up to 70 per cent of the Murmac property and Strike property, and 100 per cent of the Sun Dog property.

Name change

Concurrently with completion of the transaction, the company has changed its name from Angold Resources to Aero Energy. The common shares of the company are expected to commence trading on the TSX Venture Exchange under the new name and the new ticker symbol AERO on or about Feb. 13, 2024.

Property descriptions

The optioned properties, covering a total area of 39,381 hectares, are located along the northwestern margin of the Athabasca basin and encompass the vast majority of target horizons (electromagnetic or EM conductors) in the Uranium City area for high-grade uranium mineralization associated with the Athabasca basin unconformity (unconformity-style mineralization). Historical exploration efforts were focused on Beaverlodge-style mineralization and the optioned properties are largely unexplored by modern techniques. Within the optioned properties, there are numerous historical high-grade uranium (more than 1 per cent U3O8) surface showings in addition to historical uranium production. Approximately $7.6-million has been invested in the optioned properties since 2020 by Fortune Bay Corp. and Standard Uranium Ltd. (the underlying owners). The optioned properties contain multiple, permitted, drill-ready targets where reconnaissance drilling completed by the underlying owners intersected narrow zones of uranium mineralization and wide zones of hydrothermal alteration. Shallow, elevated uranium in drill core on the optioned properties is associated with favourable brittle-deformed graphitic rocks and pathfinder elements typical of high-grade Athabasca basin deposits. These results confirm that Athabasca basin unconformity-style mineralizing systems have been active on the optioned properties.

Sun Dog property

The Sun Dog property, optioned from Standard, covers an area of 19,604 hectares in nine mining claims and is host to the historic Gunnar uranium mine, which produced approximately 18 million pounds (lb) of U3O8 between 1953 and 1981. Sun Dog also hosts historical uranium mineralization at surface ranging between 0.1 per cent and 3.58 per cent U3O8. Standard has invested approximately $4-million in exploration at Sun Dog, where 13 holes drilled in 2022 and 2023 resulted in the identification of anomalous radioactivity and broad zones of strong hydrothermal alteration requiring follow-up.

Strike property

The Strike property, optioned from Fortune Bay, covers an area of 9,746 hectares in four mining claims. Strike is host to multiple historical surface uranium showings exceeding 1 per cent U3O8 at surface and grading as high as 27 per cent U3O8. In addition, historical small-scale mining was conducted at the Tena zone, where approximately 1,000 tons were mined in the 1950s, with reported grades of 0.6 per cent to 3.5 per cent U3O8. Fortune Bay has invested approximately $1.5-million in exploration at Strike and in 2021 completed a ground gravity survey to augment historical VTEM (versatile time-domain electromagnetic) and geochemical surveys previously completed by Cameco. In 2022, nine drill holes were completed by Fortune Bay, three of which intersected anomalous uranium mineralization up to a maximum of 0.43 per cent U3O8. Follow-up and exploratory drilling is strongly warranted at 12 target areas.

Murmac property

The Murmac property, owned by Fortune Bay, covers an area of 10,131 hectares in 16 mining claims. Murmac is host to multiple historical surface uranium showings exceeding 1 per cent U3O8 and grading as high as 10.3 per cent U3O8. Fortune Bay has invested approximately $2.1-million in exploration at Murmac. In 2022, Fortune Bay completed ground gravity and VTEM surveys and then completed a maiden drill program totalling 15 holes. Anomalous uranium was intersected in six of the holes, with up to a maximum individual assay of 0.18 per cent U3O8. Follow-up and exploratory drilling is strongly warranted at 33 target areas.

Option terms

Sun Dog property

The Sun Dog option is for the right to acquire a 100-per-cent interest in Sun Dog from Standard for $650,000 in cash and $650,000 in share payments, payable in annual instalments over a two-year period, and a $6.5-million work commitment over a three-year period. Following exercise of the Sun Dog option, Standard will retain a 2-per-cent net smelter return royalty, which may be reduced to 1 per cent for a $1-million cash payment.

An attached table provides a summary of the Sun Dog option, which will transfer to the company through the company's purchase of NumberCo.

Strike and Murmac properties

The Strike and Murmac option is for the right to acquire up to 70 per cent in the Strike and Murmac properties from Fortune Bay in three stages for $1.35-million in cash and $2.15-million in share payments, payable in annual instalments over a 3.5-year period. Additionally, the option includes a $6-million work commitment over a three-year period. The Murmac property is subject to an existing 2-per-cent net smelter return royalty.

An attached table provides a summary of the Strike and Murmac option, which will transfer to the company through the company's purchase of NumberCo.

After earning in a 51-per-cent, 60-per-cent or 70-per-cent interest (whichever the case may be), the company and Fortune Bay will form a joint venture with standard pro rata funding requirements.

Transaction terms

Pursuant to the terms of the transaction, the company has acquired all of the outstanding share capital of NumberCo in consideration for the issuance of 23.5 million common shares of the company to the existing shareholders of NumberCo. The company has also assumed the obligations of NumberCo related the optioned properties, including the requirements to complete payments and share issuances to Fortune and Standard, and incur exploration expenditures, in order to maintain an interest in the optioned properties.

Upon completion of the transaction, the company issued 1,333,333 common shares to each of Fortune and Standard, at a deemed price of 15 cents, to satisfy certain obligations owing pursuant to the option agreements under which NumberCo controls the optioned properties. For further information regarding the payments, share issuances and expenditures required to acquire an interest in the optioned properties, readers are encouraged to review the news release issued by the company on Dec. 22, 2023.

The company is at arm's length from NumberCo, the vendors and the underlying owners, and no finders' fees were payable in connection with completion of the transaction.

Qualified person

The technical content of this news release has been reviewed and approved by Galen McNamara, PGeo, the interim chief executive officer of the company and a qualified person as defined by National Instrument 43-101.

About Aero Energy Ltd.

Aero Energy is an exploration and development company targeting large-scale mineral systems worldwide. The company's assets include projects in Chile and uranium projects in Canada. The Dorado project in Chile features a major porphyry-gold system where drill results include 302 metres at 0.71 gram per tonne (g/t) gold (Au). The Cordillera project in Chile is strategically located between two multimillion-ounce gold deposits and features multiple gold exploration targets. The uranium projects in Canada are prospective for high-grade uranium mineralization.

We seek Safe Harbor.